AIA delivers excellent results in 1H

AIA Group said last week it has delivered excellent results in the first half ended on 31 May.

Noting record growth in value of new business (VONB), it said the Group achieved a 42% growth in VONB to $ 1,753 million, a 37% increase in annualised new premiums (ANP) to $ 3,196 million and VONB margin up 1.8 pps to 54.2%.

Reflecting strong operating profit generation and increased returns; AIA’s IFRS operating profit after tax (OPAT) was up 16% to US$2,262 million; IFRS operating earnings per share up 16% to 18.87 US cents; Embedded value (EV) operating profit up 21% to $ 3,456 million and Operating return on EV (operating ROEV) increased to 17.1%.

In terms of robust cash flow and resilient capital position; AIA’s underlying free surplus generation of $ 2,307 million, was up 13%; Free surplus of $ 11.0 billion; EV Equity of US$47.8 billion; EV of $ 46.3 billion, up $ 4.2 billion in the first half and Solvency ratio for AIA Co., our principal operating company, of 427% on the HKIO basis.

AIA also reported a 17% increase in interim dividend to 25.62 Hong Kong cents per share

AIA’s Group Chief Executive and President Ng Keng Hooi commenting on the results, said: “AIA has delivered an excellent set of results in the first half of 2017 with record VONB growth of 42% to $ 1,753 million. As a result of our financial discipline and commitment to delivering high-quality, sustainable growth, we have also achieved significant increases in IFRS operating profit and free surplus generation. Our performance is a clear reflection of the strength of AIA’s businesses and the consistent execution of our strategy. The Board has declared a 17% increase in the interim dividend for 2017. This reflects AIA’s excellent financial results in the first half as well as our confidence in the outlook for the Group.”

“AIA has significant competitive advantages created over our long history in Asia. We have a clear strategy that is working well and is fully aligned with the substantial opportunities presented by the extraordinary social changes and substantial economic growth taking place across the region. Our strong track record of value creation is the direct outcome of our many experienced teams working collectively to deliver our strategic priorities. We will continue to challenge ourselves and our strategy to ensure we capture the many significant opportunities that the region presents – well into the future.

“Today’s announcement is the first time I have reported our financial results since I assumed the role of Group Chief Executive at the beginning of June and I am delighted that we have delivered a very strong performance. AIA is an exceptional company with outstanding people and a unique franchise. I look to the future with great enthusiasm as we continue to realise AIA’s full potential in Asia and generate sustainable value for our customers and shareholders.”

AIA Group comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, Cambodia, a 97% subsidiary in Sri Lanka, a 49% joint venture in India and a representative office in Myanmar.